FREMONT, CA - ABVC BioPharma, Inc. (NASDAQ: ABVC), a clinical-stage biopharmaceutical company, has entered into a definitive agreement to license its healthcare-related expertise to Senior Paradise, Inc. (SPI), a real estate developer specializing in the healthcare sector. The deal, announced today, also includes a lease of ABVC's property for SPI's development projects.
Under the terms of the agreement, SPI will pay ABVC a license fee of $3M, which can be settled in cash or stock. Additionally, ABVC will receive royalties equivalent to 2% of SPI's revenues generated from the development of the leased land. The property in question is expected to be developed into a long-term care center for the elderly, as well as facilities for plant factories and good agricultural practices (GAP) for botanical drug products and dietary supplements.
Dr. Uttam Patil, CEO of ABVC BioPharma, expressed optimism about the partnership, stating that the strategic initiative could optimize the utilization of the company's resources and potentially provide a new revenue stream. He also mentioned the possibility of repurposing the land for commercial or residential development to maximize its value.
The move comes as the life sciences real estate sector is experiencing growth, with a notable increase in transaction volume. In the Asia Pacific region alone, $675M worth of life sciences real estate changed hands in the first three quarters of 2021, a significant rise from less than $100M in 2018. The United States leads the global market in these transactions. Industry experts like Erik Hill have highlighted the appeal of healthcare real estate for its recession-resistant returns.
ABVC BioPharma, with a pipeline of six drugs and one medical device under development, collaborates with renowned research institutions such as Stanford University and the University of California at San Francisco. Senior Paradise, Inc., a Cayman-registered company, focuses on healthcare-related real estate development for senior care, intending to work with ABVC on this collaborative project in the Asian Special Economic Zone.
This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. Investors are encouraged to review the company's filings with the SEC for a more comprehensive understanding of these factors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.